Finance Ministry to write off $120m of TOR's legacy debt - MD

The Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, disclosed that the Finance Ministry plans to write off approximately US$120 million of the refinery's legacy debt. This move is expected to alleviate the financial strain on the state-owned refinery. Kombat made the announcement during a visit by Parliament’s Energy Committee to the refinery.

The company's legacy debt currently stands at around US$400 million following a previous restructuring effort. Kombat explained that the Ministry of Finance intends to include the proposed debt write-off in the 2026 budget, which would further reduce the refinery's outstanding liabilities. The refinery still owes substantial amounts to private companies, such as Sahara and BP, as well as other state-owned institutions like the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).

Kombat appealed to the Energy Committee to assist in resolving the obligations owed to GNPC and VRA while negotiations continue with TOR's private creditors. The proposed debt relief is anticipated to enhance TOR's financial position and lessen the burden of its accumulated legacy obligations.